The shares of this small-cap company gained up to 1.15 percent after the company ink into strategic collaboration with Boston Ivy Healthcare Solution (P) Limited and United Imaging Healthcare.
With a market capitalization of Rs 2,714.28 crore, the shares of Krsnaa Diagnostics Ltd were trading at Rs 839.20 per share, increasing around 0.59 percent as compared to the previous closing price of Rs 844.20 apiece.
Reason for Rise:-
According to the company filing, Krsnaa Diagnostics Ltd ink in strategic collaboration with Boston Ivy Healthcare Solution (P) Limited (Medikabazaar) and United Imaging Healthcare for procuring world-class, advanced diagnostic equipments to support its nationwide expansion.
Moreover, Medikabazaar, in collaboration with United Imaging, has agreed to facilitate an investment of over ₹300 crore, to enable the deployment of more than 30 new imaging centers across India.
Furthermore, the agreement is designed to offer the firm a highly advantageous and sustainable financing strategy that provides cost efficiency and improved operational capabilities, reflecting the firm’s strong belief in its development potential and industry position.
Financial Condition:-
Looking forward to the company’s financial performance, revenue magnified by 23 percent from Rs 132 crore in Q1FY24 to Rs 163 crore in Q1FY25, but during the same period, net profit magnified significantly by 20 percent from Rs 15 crore to Rs 18 crore.
Industry overview:-
The domestic diagnostics industry is expected to grow from approximately USD 13 billion in FY23 to USD 25 billion by FY28, achieving a CAGR of around 14%. Both the radiology market, driven by rising imaging service demand, and pathology testing services are experiencing significant growth.
Operational update:-
The company is launching 21 CT scan centers in Maharashtra and plans to install seven additional CT machines. It signed a contract for 17 new MRIs and operates 17 existing CT machines. The Assam project will establish 10 labs and 1,256 collection centers, with 400 already operational.
Strategic Expansion:-
Krsnaa is strategically expanding retail by establishing 40 labs in leased spaces to boost revenues from public-private partnerships and B2C segments. The company plans to leverage existing infrastructure to enhance its retail presence and expand its network of collection centers and franchisees.
Krsnaa is expanding its presence in Tier-2 and Tier-3 cities to provide access to high-quality healthcare. Its diversified operations, not reliant on any single state or business segment, enable the company to navigate challenges effectively without significantly affecting overall performance.
Management guidance:-
The company’s existing centers operate at a 38% margin, while new centers are at 12%, with expected improvements as operations ramp up. Management maintains a growth guidance of 25%, with aspirations to reach a 30% margin in the future.
Company Profile:-
Krsnaa Diagnostics Limited is primarily engaged in the business of providing diagnostic services all over India. The Company provides radiology and pathology services for X-Ray, computed tomography (CT) scan, magnetic resonance imaging (MRI), mammography, tele-reporting services, and all types of blood and urine investigation.
Written by:- Abhishek Singh
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